A Dissertation Submitted To The Midlands State University Department Of Local Governance Studies In Partial Fulfilment Of The Requirements For The Bachelor Of Science Honours Degree In Local

Subscribe to access this work and thousands more

Abstract

The research sought to assess the cash management systems in Chegutu Municipality. Chegutu Municipality has its set vision, mission, objectives, core values and goals that guide their daily operations but there were insurmountable cash flow challenges being faced leading to the council failing to meet the set objectives. The failure to meet objectives lead the research to seek to enquire on the challenges being faced in cash management and to identify the strategies that are being used to overcome these challenges and how liquidity impacts on service delivery. Chapter two reviews the cash management concept as seen by a number of scholars. The evolution, components of cash management used in business, challenges encountered in the cash management process, effective tools for cash management, the link between service delivery and cash management as well as empirical evidence. Chapter three focuses on the research methodology. The researcher used both qualitative and quantitative data gathering techniques. Questionnaires, observation, purposive and random sampling, internal reports and records and interviews were used to gather data. Chapter four presents and analyses the research findings and the cash management systems in Chegutu Municipality are evaluated. The research found out that the cash flow problems faced by Chegutu Municipality are as a result of poor cash management systems used resulting in poor financial management. Problems faced by Chegutu Municipality in cash management are mismanagement and corruption, weak internal control system, poor collection methods, lack of qualified staff and economic hardships, public resistance among others. However, the Municipality is trying to beset these challenges through employing a number of strategies such as budgeting, cash flow forecasting, auditing, financial reporting, creditor management, debtor management, internal control systems and strategic planning and management. The recommendations include maximize revenue collection, improve and strengthen internal control systems to deter fraud and other forms of corruption, practice participatory budgeting, explore new ways of revenue generation (income generating projects), human resources developing (training and capacity building), formulation of the revenue generation and expenditure monitoring committee, computerization of the finance department (e-government), lobby government to put debt recovery instruments in order to strengthen the cash management systems of local authorities.

Subscribe to access this work and thousands more